- Circle launches Arc, a new Layer-1 blockchain.
- USDC serves as the native gas token.
- Arc aims at compliance in stablecoin finance.
Circle has launched Arc, a Layer-1 blockchain using USDC as its gas token, aimed at creating an open and compliant platform for stablecoin payments and tokenized assets.
Arc reopens the open versus permissioned chain debate, potentially influencing market trends with its foundation-led, regulation-friendly design and EVM compatibility.
Circle has launched Arc, a new Layer-1 blockchain focused on regulated financial services. The blockchain utilizes USDC as the native gas token. The project seeks to support stablecoin payments and tokenized assets while maintaining compliance standards.
Involved parties include Circle, the principal developer and operator, with Jeremy Allaire, CEO, announcing its launch. This development places USDC at the core of Arc and leverages Circle’s strengths in stablecoin and regulatory compliance.
The launch follows Circle’s strong Q2 performance, with a 53% increase in revenue, signaling institutional momentum. The use of USDC as the gas token suggests an evolution in how stablecoins might be integrated into blockchain operations.
Arc is EVM-compatible, broadening Ethereum-based applications’ accessibility. While still in the testnet phase, the project hints at attracting developers interested in stable, compliance-friendly financial services that align with existing crypto infrastructure.
The testnet is anticipated this fall, promising wider access. Support for Ethereum (ETH) and ERC-20 tokens is expected, facilitating potential DeFi and enterprise activities. These efforts resonate with similar past initiatives but pledge an open, permissionless governance.
Potential outcomes include enhanced financial infrastructure within the crypto ecosystem. EVM compatibility and governance by a foundation may lead to new DeFi possibilities. Historical trends suggest debates on open versus permissioned chains might surface with this launch.
Circle’s statements framing Arc as “purpose-built for stablecoin finance,” with “deterministic sub-second settlement finality” and “opt-in privacy.”
